How to Calculate the COLA
- By Jerry Taylor
- Published 01/16/2009
- Stuff
The Bureau of Labor Statistics maintains a nice website with all of the needed information. You can start at their home page, http://www.bls.gov/ and follow the steps below.
1. Click on the "Databases and Tables" tab.
2. On the new page scroll down to the section labeled "CPI Data Bases". Under Database names you will see a title Urban Wage Earners & Clerical Workers (current series). Go across the row to the Icon for Multi-Screen Data Search. Click on it.
3. On the new screen select the box for Not seasonally adjusted. Then click on Next Form.
4. On the new screen you will see a box below Choose Area. Scroll down the list to "A423Seattle-Tacoma-Bremerton, WA." Highlight that selection by clicking on it. Then click on the Next Form box.
5. On the new screen select the option Alternate. Then click on the Next Form box.
6. On the next screen highlight AAO all -old base. Then click on next form box.
7. Select Semi-annual option. Then click on the next form box.
8. Highlight the years to be used by clicking on a selection. Pick all years. It is not necessary, but you may as well have the history.
Under format confirm that the "Dot" is in option 2.
Scroll down to the Retrieve Data Box. Click on that box
9. You should now be on a page with CPI information for this area and over the number of years selected. DRS uses' each ANNUAL number for the given year to compute the cost of living increase or decrease. See RCW 41.26.240 for the application.
1. Click on the "Databases and Tables" tab.
2. On the new page scroll down to the section labeled "CPI Data Bases". Under Database names you will see a title Urban Wage Earners & Clerical Workers (current series). Go across the row to the Icon for Multi-Screen Data Search. Click on it.
3. On the new screen select the box for Not seasonally adjusted. Then click on Next Form.
4. On the new screen you will see a box below Choose Area. Scroll down the list to "A423Seattle-Tacoma-Bremerton, WA." Highlight that selection by clicking on it. Then click on the Next Form box.
5. On the new screen select the option Alternate. Then click on the Next Form box.
6. On the next screen highlight AAO all -old base. Then click on next form box.
7. Select Semi-annual option. Then click on the next form box.
8. Highlight the years to be used by clicking on a selection. Pick all years. It is not necessary, but you may as well have the history.
Under format confirm that the "Dot" is in option 2.
Scroll down to the Retrieve Data Box. Click on that box
9. You should now be on a page with CPI information for this area and over the number of years selected. DRS uses' each ANNUAL number for the given year to compute the cost of living increase or decrease. See RCW 41.26.240 for the application.
10. Now just do the calculation.
Last year divided by prior year minus one times 100.
(651.608/623.650)-1=0.04483 or 4.483%
1 Response to "How to Calculate the COLA" 
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said this on 27 Jan 2009 10:04:03 AM PDT
Very useful article, I have looked at all these figures before but I have never really understood the formula used to determine the COLA. Thanks, Randy Tibbs
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